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Passenger Vehicle Sales Poised for Historic Surge in FY26, Despite Slowing Growth: CRISIL

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          🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source
Backed by healthy cash flows and strong balance sheets, PV makers are set to maintain a high capex outlay of around Rs 30,000 crore this year — focusing on capacity expansion, electric mobility, localisation, and digital transformation.
The article from Republic World discusses a report by CRISIL Ratings indicating that passenger vehicle sales in India are expected to reach a historic high of 4.8 to 5 million units in FY26, despite a projected slowdown in growth to 3-5% annually from the previous 26% surge in FY23. This growth is attributed to a strong demand for utility vehicles, which now constitute 55% of the market, up from 43% in FY21, driven by rising disposable incomes and a shift in consumer preferences towards larger vehicles. However, the report also highlights challenges such as increasing competition, the need for significant investments in electric vehicle (EV) technology, and the pressure on profit margins due to rising costs and the necessity to offer discounts. Despite these hurdles, the industry is poised for continued growth, supported by a robust product pipeline and increasing consumer interest in EVs, which are expected to make up 15-20% of total sales by FY26.

Read the Full RepublicWorld Article at:
[ https://www.republicworld.com/business/passenger-vehicle-sales-poised-for-historic-surge-in-fy26-despite-slowing-growth-crisil ]